Rocket Companies, Inc. · NYSE:RKT
Rocket Companies — Investor Presentation (November 2022)
43 slides from Rocket Companies's investor presentation, Nov 21, 2022
Slide 1: Rocket Companies Investor Presentation November 2022
Rocket Companies Investor Presentation November 2022 ROCKET Companies
Slide 2: Disclaimer
~~ ROCKET Disclaimer This presentation contains and related discussions may contain “forward-looking statements” within the meaning of U.S. federal securities laws. Forward-looking statements include information concerning possible or assumed future results of operations, Rocket Companies, Inc.'s (t
Slide 3: Starting With A Simple Idea...
Starting With A Simple Idea... In the early days of the internet era, our Founder and Chairman Dan Gilbert committed the company's entire resources to moving online. Rocket continues to lead in driving transformative change in the mortgage industry “WE MUST take this great technology to the internet
Slide 4: Building a Technology-Driven Company
Building a ROCKET Companies <-, —_ Technology ROCKET . ° Mortgage G la nt e You're pre-approved for aloan up to 2 4M $456,000 Rocket Accounts! Max. loan amount $456,000 Operate Home price $330,000 History Down payment $45,000 ond 70 Est. mortgage payment $2,021 Transaction Net Volume Since fencer ff
Slide 5: A Platform Creating Certainty in Life's Complex Moments
A Platform Creating Certainty in Life’s Complex Moments Personal Finance Home Auto Financing 6 Purchase Home Search “Se eee, And Sales FOUNDATION: OUR CULTURE PILLARS OF THE x PLATFORM ° Technology Rocket Drives = Cloud Force Efficiency Data Solutions ROCKET Companies
Slide 6: Investment Highlights
= ROCKET Investment Highlights Comps The Rocket platform was built to transform complex transactions, driving long-term profitable growth at scale. Massive, Fragmented Markets 1 | 2 Superior Consumer Experience 3 Trusted, Digital-First Brand / 4 Platform Advantage Proven Leadership and Culture
Slide 7: Massive, Fragmented Markets
ROCKET ‘Companies
Slide 8: Massive Market Opportunity
Massive Market Opportunity Rocket competes in some of the largest, most complex segments of the economy: Mortgage Real Estate Financial Services Solar 20% of U.S. GDP $5TN TAM ROCKET ‘Companies
Slide 9: Buying a home is stressful for many Americans
ROCKET Companies Many Americans, about 40%, say buying a new home is the most stressful event in modern life. 9B - HOUSINGWIRE
Slide 10: Home Ownership Priorities are Accelerating
Home Ownership Priorities are Accelerating A demographic wave of almost 70M Americans aged 20-34 is entering home ownership for the first time, demanding digital transformation of the real estate experience. ROCKET Companies 739 Of clients using online platform are first-time homeowners or Millennia
Slide 11: Rocket is Positioned to Lead Our Industries
Rocket is Positioned to Lead Our Industries Our markets remain highly fragmented compared to other large industries that moved online earlier - like e-commerce, travel, or tax prep. Rocket is positioned to lead the digital transformation of our industries. 50% 40% 30% 20% 10% 0% ROCKET Companies MAR
Slide 12: Superior Consumer Experience
Slide 13: Superior Consumer Experience
Superior Consumer Experience ROCKET ‘Companies In complex transactions where the legacy experience can be confusing and discouraging, Rocket provides simple, fast, and trusted digital solutions. ROCKET Mortgage (698) 452-8179 TalkToUs TRADITIONAL INDUSTRY ROCKET Your Mortgage EXPERIENCE EXPERIENCE T
Slide 14: Simplifying Complex Transactions
ROCKET ‘Companies Simplifying Complex Transactions ROCKET Rocket's proprietary technology Rn raee Mortgage delivers a seamless digital You're pre-approved experience for our clients. fora loan up to °456,000 Goi That covers the basics. Max. loan amount $456,000 Now, let's talk numbers. Home price $3
Slide 15: Rocket's End-to-End Home Buying Experience
ROCKET Companies Rocket's End-to-End Home Buying Experience Cross-Sell Opportunities Personal Loans Home Search Home Buying & Selling | Home Financing Home Closing Mortgage Servicing ROCKET ROCKET ROCKET AMROCK ROCKET Homes Homes Mortgage Mortgage slim @ —-@O@—-O-O6-O—. Illustrative transaction: $13
Slide 16: Expanding Across Product Categories
Expanding Across Product Categories Leveraging advantages in client acquisition, data, and technology, the Rocket platform is expanding across complex transactions including home search and sales, personal finance, and residential solar ROCKET Loans Monthly ~ a) - ark Why Rocket Loans? eoue ROCKET H
Slide 17: Powered by Proprietary Technology Stack
Powered by Proprietary Technology Stack Proprietary technology developed by 3,000+ DIGITAL POINT-OF-SALE technology and product strategy team members drives our entire operating process. PARTNER API PLATFORM Digital Software- Client Client Driven Servicing & Acquisition Workflows Retention DATA SCIE
Slide 18: Rocket Pro API: Extending to our Partners
~ Kea Extending to our Partners We enable clients to engage with the Rocket platform in the way that works best for them, including with our Rocket Professional partners CONSUNERID AT j j j iai j | EN Consumer Contact or integrated directly in partner digital experiences via our APIs. pL) Record a v
Slide 19: Rocket Money: Driving Deeper Client Engagement
Re ° ROCKET Rocket Money: Driving Deeper Client Engagement Companies ROCKET Helping Consumers Manage Their Entire Financial Lives (Truebill) —— ~ —\ | §100B+ ith #1 Consumer Tech Company! Transaction Volume Analyzed/Month2 al e990 2M+ $100M+ Premium Annualized paying Recurring Members? Revenue? Canc
Slide 20: Rocket Rewards: Driving Client Loyalty
ROCKET Rocket Rewards: Driving Client Loyalty companies Helps clients achieve their financial goals while continuing to drive value and brand loyalty for Rocket Prospective and existing home buyers can: Accrue Reward Points by opening an account, consuming educational content on homebuying, and more
Slide 21: Trusted Digital-First Brand
Slide 22: Trusted, Digital First Brand
ROCKET Companies Trusted, Digital First Brand ROCKET | ROCKET 22
Slide 23: With National Brand Recognition
ROCKET ‘Companies With National Brand Recognition / se Rocket's trusted, nationally recognized, digital-first A , brand, backed by billions of dollars of investment +S. Q U A R ES J over many years, is a competitive advantage that z is difficult to replicate. #1 5 pF ccer Mutgage Classic « DETROIT M
Slide 24: Primary Mortgage Origination and Servicing
PRIMARY MORTGAGE PRIMARY SERVICING MORTGAGE ORIGINATION
Slide 25: Platform Advantage
4 Platform .. i! Advantage ° ONE 25
Slide 26: The Rocket Flywheel
ROCKET ‘Companies The Rocket Flywheel The core of our economic flywheel is that we are constantly leveraging our profitability advantages to reinvest in the business, further strengthening our competitive position. Unmatched Scalability Continuous Market Share Gains Proven Efficiency Leveraging Data
Slide 27: Multiple Drivers of Growth
ROCKET Companies Multiple Drivers of Growth PARTNER NETWORK + Extending brand and technology to partners Current Mortgage Info + Adding new partners * Increasing share with DIRECT-TO-CONSUMER existing partners * Investing in brand and client acquisition * Growing digital adoption : POWERED BY ROCKET
Slide 28: Long-Term Mortgage Market Share Gains
ROCKET Companies Long-Term Mortgage Market H 8.8% Share Gains 7.8% 6.4% 5.1% 4 ao, 5.0% 50% 5 9% 4.4% 3.4%, 2.0% 1.6% 1.3% $69 $77 $78 $57 $25 $28 $29 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ME Rocket Originations ($ in B) —®=Rocket Market Share 28
Slide 29: Strong Client Base Unlocks Platform Potential
— ROCKET . ompanies Strong Client Base Unlocks Platform Potential 90%+ Retention drives substantial lifetime value -) advantages, with repeat transaction opportunities e across home, auto, personal finance, and other categories over the client's life. Client loans serviced? Net Client Retention Rate
Slide 30: Proven Leadership and Culture
os Ae - 5) proven (Uh " Leadership and Culture 3} WORK HARD, PLAY HARD. a4
Slide 31: Proven track record over decades
ROCKET ‘Companies Proven track record over 3 decades Current leadership team has been with organization more than 2 decades on average Robust pipeline of talent to continue to grow business 31
Slide 32: Rocket Companies Leadership
~ ROCKET Rocket Companies Leadership JAY FARNER BOB WALTERS Vice Chairman & Chief Executive Officer President & Chief Operating Officer Rocket Companies Rocket Companies 27 Years 26 Years BRIAN BROWN Chief Financial Officer & Treasurer Rocket Companies 8 Years TIM BIRKMEIER TINA JOHN BILL BANFIELD B
Slide 33: Culture is Our Foundation
Culture is Our Foundation ROCKET Companies Dan Gilbert, our founder and Chairman, purposefully created a strong cultural foundation of core principles, or “ISMs”, as a cultural operating system to guide decision-making by Innovation is rewarded. all our team members. Execution is worshipped. Obsesse
Slide 34: Love Our Team Members
Love Our Team Members ROCKET Companies Our team members put the ISMs into action every day. The result is an empowered and passionate team aligned in a common mission. ESSENCE Forbes Forbes FORTUNE FORTUNE e e e 2 #1 Best The Best Best #3 America’s Best Companies 100 Best #6 Best Large Workplace for
Slide 35: For More Than Profit
For More Than Profit Our company and community are inextricably linked, serving as the foundation for our community investment, team member development and business growth strategies. 2021 Environmental, Social And Governance Report ROCKET Companies Inaugural ESG report published June 2022 Note: Roc
Slide 36: Appendix
Slide 37: Financial Highlights
— ROCKET . . . . Companies Financial Highlights (Units in ‘000s, $ in M) 2020 2021 Q3'20 Q3'21 Q3'22 Q4'22E Closed Loan Volume $320,209 $351,193 $88,982 $88,047 $25,578| $17,000 - $22,000 YoY Growth % 121% 10% 122% (1%) (71%) QoQ Growth % N/A N/A 23% 5% (26%) Net Rate Lock Volume $338,667 $333,790 $
Slide 38: Our Companies
Our Companies HOME SEARCH & SALES ROCKET Homes aN FOR SALE ey OWNER: Seamless, fully-integrated home buying and selling experience via real estate agent network and home search site. Empowering sellers and buyers with the resources they need to sell or buy properties directly. SALES & MARKETING SERV
Slide 39: Endnotes: Adjusted EBITDA reconciliation
Endnotes Adjusted EBITDA reconciliation ($ amounts in millions) Netincome Interest and amortization expense on non-funding debt Income tax provision Depreciation and amortization Share-based compensation expense Change in fair value of MSRs due to valuation assumptions (net of hedges) (a) Litigation
Slide 40: Endnotes: Adjusted Revenue reconciliation
Endnotes Adjusted Revenue Reconciliation ($ amounts in millions) Total Revenue, net Change in fair value of MSRs due to valuation assumptions (net of hedges) (a) Adjusted Revenue ROCKET Companies Three Months Ended September 30, Year Ended December 31, 2022 2021 2020 2021 2020 (Unaudited) (Unaudited
Slide 41: Endnotes: Adjusted Net Income reconciliation
—s ROCKET Endnotes ¢ ‘ompanies Three Months Ended September 30, Year Ended December 31, 1 2022 2021 2020 2021 2020 ‘Adjusted Net Income (Loss) Reconciliation (§ amounts in millions) (Unaudited) (Unaudited) Net income attributable to Rocket Compat $7 $75 $58 $308 $198 Net income impact from pro forma
Slide 42: Endnotes
~~ ROCKET Endnotes 2. “Adjusted EBITDA Margin” calculated as Adjusted EBITDA divided by Adjusted Revenue. 3, We define “net client retention rate" as the number of clients that were active at the beginning of a period and which remain active at the end of the period, divided by the number of clients
Slide 43: Rocket Companies
ROCKET Companies
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